- Further evidence of Asian firms to 'nearshoring' production sites to Europe -
Regulatory News:
CTP, Europe's largest listed developer, owner, and manager of industrial and logistics properties by gross lettable area (GLA), has signed a deal with Quanta Computer Inc. (Quanta; TWSE: 2382.TW), a leading Taiwanese company that manufactures computers and electronic hardware, for a high-tech pioneering 22,500 sqm production facility at CTPark Jülich in the Brainergy Park Jülich in northwest Germany. Quanta is further expanding its global footprint in producing state-of-the-art technology products for clients in Europe.
The deal is further evidence of the 'nearshoring' trend that is seeing a growing demand from Asian companies looking to expand their production space in Europe driven by a changing geopolitical environment and post pandemic supply chain disruptions. Organisations are increasingly seeking to build resilient and ESG-compliant supply chains by nearshoring their production capabilities closer to their end customer base. In light of this, CTP opened its first Asian office in August 2023 to be closer to and serve its clients in the region increasingly moving their production space to Europe. The focus is on understanding their needs to build on CTP's capability as a full service property partner delivering high tech space for semiconductor, electronics and IT businesses.
Established in 1988, Quanta is a Fortune Global 500 company and reached a revenue of approximately $35 billion in FY 2023. The new facility at CTPark Jülich will be on a 15-year lease and is set to display cutting edge technology with an automated production line and use of robotics. CTP will invest €45 million to develop the project delivering an array of special requirements for Quanta at the build-to-suit facility, including a product testing lab and bespoke airlocked spaces. Construction is set to begin onsite in July and complete in the second half of 2025. CTPark Jülich is located close to the German borders with Belgium and the Netherlands and is within easy motorway reach of major European cities Frankfurt, Brussels and Amsterdam.
The rocketing nearshoring trend in Europe led to demand for factory space in the region to rise by a staggering 29% in 2022 compared to 2021, mainly driven by a rush for space from manufacturers with CEE countries particularly benefitting. Nearshoring is also being supported with EU policy including The European Chips Act that encourages their production in the EU to enhance the resilience of local supply chains and support employment opportunities. The Act is expected to channel €43bn of public and private investment into the manufacturing of chips in Europe.
Jaromír Cerník, Business Development Director for CTP Asia, said: "Since opening our Asian office we have seen an ever-greater number of enquiries from both new and our long-term Asian clients looking to base more of their operations closer to European markets as the rise in nearshoring gathers pace. We have immediate access to a significant landbank across Europe, which as an owner-developer means we can create space tailored to the needs of clients like Quanta Computer and manage it for them for the long term. With a multitude of clients from high-tech sectors we have developed an unrivalled level of expertise in delivering space that can meet the extremely specialist requirements of modern technology focused companies."
Timo Hielscher, Managing Director M&A at CTP Germany, said: "In Germany we continue to see an enormous appetite from technology focused Asian companies moving here to de-risk their supply chains and to take advantage of the talent pool in the country. This is a key reason why we are continuing to invest in Germany, with one example of this being the new business park we are building in Mülheim that will provide an ecosystem of over 160,000 sqm of R&D, laboratory, co-working and industrial and logistics spaces for companies in high-growth sectors."
Recent examples of Asian firms nearshoring to Europe include Jiangsu Xinquan Automotive Trim, a Chinese manufacturer of automotive parts. Global Taiwanese semiconductor manufacturer TSMC is also developing its first plant in Europe, located in Dresden in Germany. Representing an investment of around €10bn, the plant is expected to open in 2027. In late 2023, Chinese company Topband Smart Europe signed for 11,000 sqm of production space at CTPark Timisoara In Romania. The major firm that manufactures controllers for power tools, home appliances and BMS is locating an important new production facility at the Park to better meet customer needs in Europe and across global markets. While Chinese automotive component company KSHG Auto Harness recently leased 13,000 sqm at CTPark Deva II also in Romania to create new production space, building on the 8,000 sqm it already occupied at the CTPark.
Asian clients make up 10% of CTP's portfolio of industrial and logistics space. They also include NIO, the Chinese electric car company that needed space to house its first European power swap station manufacturing facility and had precise requirements in terms of a Central Eastern Europe location close to a local skilled workforce and supplier base, which CTP could deliver at CTPark Budapest West in Hungary.
ABOUT CTP
CTP is Europe's largest listed owner, developer, and manager of logistics and industrial real estate by gross lettable area, owning 11.8 million sqm of GLA across 10 countries as at 31 December 2023. CTP certifies all new buildings to BREEAM Very good or better and earned a negligible-risk ESG rating by Sustainalytics, underlining its commitment to being a sustainable business. For more information, visit CTP's corporate website: www.ctp.eu
View source version on businesswire.com: https://www.businesswire.com/news/home/20240416776154/en/
Contacts:
CONTACT DETAILS FOR MEDIA ENQUIRIES:
Patryk Statkiewicz, Group Head of Marketing PR
Mobile: +31 6 29 59 61 19
Email: patryk.statkiewicz@ctp.eu
SEC Newgate
Sara Champness/James Carnegie
Mobile: +44 (0)7962 387 949
Email: CTP@SECNewgate.co.uk
CONTACT DETAILS FOR ANALYST AND INVESTOR ENQUIRIES:
Maarten Otte, Head of Investor Relations
Mobile: +420 730 197 500
Email: maarten.otte@ctp.eu
